Audit 373666

Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loan Program, 84.063 Federal Pell Grants Federal Award Identification #: 2024-2025 Financial Aid Year Condition: R2T4's were not always completed accurately or timely Criteria: 34 CFR 668.22 Questioned Costs: $3,173 Context: Out of 9 withdrawals tested, 1 R2T4 was a modular withdrawal and was not properly calculated based on the 49% exemption rules, resulting in $512 Subsidized and $1,980 Unsubsidized Federal Direct Loans (FDL) not being returned. 1 out of 9 withdrawals tested had $681 of Pell funds returned late. Funds were returned during the audit. Cause: The application of the 49% exemption rule was misapplied due to a misinterpretation of the regulations. The process will be fixed moving forward. The late return was missed in the R2T4 process as the calculation was completed timely and correctly, but the return did not occur until the audit. Effect: Federal funding was not returned timely and unearned funds were not made within 45 days after the date of determination. Identification as repeat finding, if applicable: 2024-001 Recommendation: We recommend that all returns be properly monitored and verified as completed by an individual with appropriate knowledge. We also recommend that R2T4 calculations, especially for those students in modular programs, be reviewed by an individual with appropriate knowledge. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.